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RMIT facing $50 million funding cut

Benjamin Preiss and Broede Carmody

RMIT is preparing to lose $50 million in government funding if changes outlined in the federal budget proceed.

Communications courses are expected to be among the hardest hit, losing about 49 per cent in federal funding, according to an email sent to RMIT staff on Monday.

In the email, RMIT vice-chancellor Margaret Gardner said proposed cuts amounted to an average decline of 20 per cent a year in government contributions. That figure varies substantially for each course but the final numbers are yet to be confirmed.

"RMIT cannot sustain such a cut in funding without facing a significant decline in the quality of education, research and services provided by the university," she said. "The university will need to set fees to redress this situation when the government deregulates fees for domestic government funded places."

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Federal changes to higher education have yet to pass through Parliament. However, the federal government has proposed to deregulate course fees, allowing universities to set their own charges.

Education Minister Christopher Pyne has previously said that increased competition between higher education providers could result in lower fees. The changes to higher education would come into effect in 2016 if they proceed.

The government is also planning to extend federal funding to private higher education providers and diploma and associate degree courses.

RMIT expects the rate of Commonwealth funding per student to drop by 43 per cent in environmental studies pushing up the minimum student contribution to $17,841 in 2016, compared with a maximum student contribution of $8613 this year.

Social studies is also expected to suffer a 37 per cent cut in the Commonwealth contribution, compared with 28 per cent for engineering, science and surveying. However, mathematics will receive a 26 per cent increase in Commonwealth contributions if the changes proceed.

RMIT has yet to announce how the changes to new "tiers" of funding for courses will affect final student fees.

"The intent of the changes announced by the federal government in the budget is clear. Universities are to be deregulated to operate with more autonomy and less funding support and regulation from government," Professor Gardner said. "Students and graduates are expected to contribute a higher proportion to the cost of their higher education."

The National Tertiary Education Union's RMIT branch president Melissa Slee said the institute had already suffered because of state government funding cuts to its TAFE arm in recent years. "This is devastating," she said. "These are massive cuts on areas that are already struggling."

RMIT communications student Louise Jankowski, 21, said she was relieved she would graduate by 2016. She said increased fees would exclude some students from studying at RMIT.

"It's a shame because it's a great place to study, especially in the communications field," she said.

Rebecca Dawson, who studies social work and psychology at RMIT, said she would be "really disappointed" if students had to pay much more for a university education. She said areas such as social work already had lower starting wages than other careers.

"In my degree a lot of the people that study social work come from lower socio-economic backgrounds," she said. "So I think for some it will deter them if they have to pay that much more."

In June. The Age revealed Melbourne University expected fees for engineering degrees would rise by at least 60 per cent and science degrees would increase by about 54 per cent.